Creo Medical Regulatory News (CREO)

14 Dec 2006 09:17

China Real Estate Opportunities SA14 December 2006 CHINA REAL ESTATE OPPORTUNITIES S.A. PROPOSED ACQUISITION OF BEIJING PROPERTY China Real Estate Opportunities S.A. ("CREO") announces that it has todayexchanged conditional contracts for the acquisition of a property in Beijing,China. The property is a prime mixed-use development located in central Beijing, knownas the Xidan Centrepoint Shopping Centre, Office Complex and Hotel. CREO hascommitted to purchase 100% of the property subject to a number of conditionsincluding the construction of the project being substantially complete and CREOshareholder approval. The vendor is a wholly-owned subsidiary of ChinaMetallurgical Construction (Group) Corp, one of China's largest conglomeratesand a company controlled by China's central government. Xidan Centrepoint is located in a prime location on one of Beijing's busiestshopping and commercial streets, known as Xidan. The street runs north-southapproximately 1km directly west of the Forbidden City and Tiananmen Square andapproximately 1km directly to the east of the Financial Street district. Theproperty lies less than 100 metres north of Xidan (underground) Station. The property covers a site area of 16,073 square metres and will when completehave a total gross built floor area of approximately 194,949 square metres over15 floors above ground and 4 floors below ground. Of this area, approximately102,945 square metres is designated for retail, a 372 room luxury hotelcomponent comprises another 32,126 square metres, while an office component is afurther 15,858 square metres. 1,000 car parking spaces and ancillary uses aredesignated for the remaining 44,020 square metres. The property is currently under construction and is expected to be completed byDecember 2007. CREO has agreed to pay a total price of RMB 3,742,520,000(approximately £243.1m or €361.9m*) payable in stages as title to the propertyis acquired and as the property is completed and leased out. An initial depositwill be paid by the Company from existing cash resources amounting to RMB187,876,000 (£12.2 million or €18.2 million). Since this acquisition will be a reverse takeover under the AIM rules, pendingshareholder approval and completion of the acquisition, the shares of theCompany were suspended from trading on AIM with effect from 10.00 a.m. on 8thDecember at the request of the Company. A circular will be sent to CREO shareholders in due course detailing the termsof the proposed acquisition along with an admission document. It is expectedthat the shares in CREO will remain suspended until the acquisition has beenapproved. CREO will be undertaking a fund raising in the New Year by way of aplacing of new shares to the market and a further announcement regarding thiswill be made in due course CREO is majority owned by the directors of Treasury Holdings ("Treasury"), RealEstate Opportunities Ltd ("REO") and the directors of REO. It will be proposedin the forthcoming circular that CREO will be managed by Treasury, Ireland'slargest property developer. Treasury owns 58.5% of REO's ordinary shares. Treasury controls a large property investment and development portfolio acrossEurope as well as very substantial interests in environmental technology,renewable energy and waste management. Treasury started operations in China in2002 working with Shanghai Industrial Investment Company, a company owned by theShanghai Municipal Government, on the development of the Chongming Eco City justoutside Shanghai. Since then, Treasury has expanded its business considerablyboth in Shanghai and Beijing and 3 of the 6 executive main Board Treasurydirectors are now resident in China to grow the business. CREO was formed in December 2005 to investigate real estate opportunities inChina. *Exchange rate £1:RMB 15.39, €1 EUR:RMB 10.34 Enquiries to: CREORay Horney, Chairman Tel: +44 (0) 1273 775225 Treasury HoldingsRob Tincknell Tel: + 86 137 889 83016 (N.B GMT + 8hrs) Teather & GreenwoodPaul Fincham Tel: +44 (0)20 7426 7736 Bankside Consultants (UK)Simon RothschildOliver Winters Tel: +44 (0)20 7367 8888 This information is provided by RNS The company news service from the London Stock Exchange